China’s central bank does not plan to expand its efforts to extend credit to small businesses in the fight against the coronavirus pandemic, as the tools involved have already provided the support they needed to and the economy has returned to normal, according to a senior People’s Bank of China (PBOC) official, reported Caixin.
In June, the PBOC and the Ministry of Finance set up a special purpose vehicle (SPV) that aimed to channel as much as RMB 440 billion ($63.6 billion) of funds to regional banks so that they could provide new loans and roll over maturing loans to small businesses.
On Thursday, Gao Fei, a deputy director general of the Financial Market Department of the PBOC, said at a press conference that the central bank currently has no plan to enlarge the scale of the SPV. As economic operations have gradually returned to normal, the finances of many small businesses’ have improved such that they no longer need loan extensions, Gao said.
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